Coinbase ends ties with firms hiring ex-SEC officials linked to anti-crypto actions, says Brian Armstrong.
Milbank faces fallout as Coinbase cuts ties over hiring former SEC enforcement chief Gurbir Grewal.
Brian Armstrong urges crypto firms to avoid supporting law firms linked to anti-industry actions by SEC officials.
Coinbase CEO Brian Armstrong has announced the exchange will sever ties with law firms employing officials from the Biden-era SEC. Armstrong's comments followed the hiring of Gurbir Grewal, a former SEC enforcement chief, by Milbank LLP, a law firm Coinbase previously worked with.
In a post on X, Armstrong stated that firms supporting individuals involved in actions against the crypto industry would lose Coinbase as a client. He emphasized that these officials should not benefit from industry clients after their tenure at the SEC.
https://twitter.com/brian_armstrong/status/1863774342267781222 Milbank Under Fire for Hiring Grewal
Grewal joined Milbank as a partner in the New York office in February. Grewal, who stepped down from the SEC in October as the agency's enforcement chief, was also in charge of the agency's enforcement division for three years. During his time as SEC’s crypto boss, he was behind over 100 enforcement actions against crypto firms, including Coinbase.
Armstrong described these actions as part of a broader effort to unlawfully kill the crypto industry. He criticized the lack of clear rules from the SEC during this period and called it an ethical breach.
Call for Accountability in the Crypto Industry
Armstrong urged other industry players to adopt similar policies. He stated that firms hiring individuals who worked against the sector should face financial consequences. Armstrong acknowledged that people can change but stressed they should pursue opportunities in other fields.
SEC's Aggressive Stance on Crypto Under Scrutiny
Under the Biden administration, the SEC has intensified its actions against crypto firms. Between 2021 and 2024, settlements and penalties against the sector totaled $19.45 billion. Grewal played a key role in these efforts, which Armstrong views as unjustified and damaging.
The SEC has also faced criticism for its approach to Coinbase specifically. In March 2023, the agency sent Coinbase a Wells notice, signaling potential enforcement actions. The exchange responded by suing the SEC, demanding clear rules for the industry.
Armstrong's strong stance reflects growing tensions between the crypto industry and regulators. The CEO's move could set a precedent for how crypto firms navigate relationships with legal advisors.
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